Purchasing Premium Domains: Is It Worth the Investment?

We live in an age of the web and your domain name is your reputation, and buying premium domains is and indicator of how serious companies are about their reputation.

Buying good names for your site can be very wise if you care about how people see you, how much your site can do for you in the SEO world and in the long run, if you see it as something you can have long term and use as an investment.

We live in an age of the web and your domain name is your reputation, your integrity and most of the time your first chance to impress someone. To find a good domain most companies look for a short, easy to remember, keyword for your business domain like “Loans.com”.

When companies decide to buy this type of domain they are looking for the quality and the price of a domain that most of the time is a little more expensive than a standard domain, it can go from hundreds to millions of dollars depending on what you’re looking for and what you want to achieve with this type of domain.

Some key points for premium domain names

1. Easy to remember, small domain name.

2. Related to my business or field.

3. Descriptive keyword rich words.

4. Brand friendly unique names.

5. Scarcity makes them more valuable.

Key reasons to buy a premium domain

When you need to buy premium domain you need to look:

Authority to your brand

Having a domain that can make you look professional and trustworthy is a good thing. Just like a good location can make a store look better, a good domain name can help your site stand out.

SEO advantages

Getting a keyword rich domain can help your site get a better ranking in the search results.

Brand awareness

Getting a short and simple domain can make more people remember and visit your site more often.

Competitive advantage

Secure your name before others use it, if this is an important industry for you and competition is high then buy the name and use it for yourself.

Long term value

Domains are digital real estate and just like in the real estate market, if you buy the right site it can go up in value and become something valuable.

Are premium domain names expensive?

Yes, they are. You can find good domains from a couple of hundreds to millions of dollars, depending on what you want.

Examples:

• “Insurance.com” was sold for around $35 million dollars.

• “Hotels.com” was bought for $11 million dollars.

This information shows you that sometimes a domain can be just way too expensive, most startups or small companies can never buy them and it’s a shame.

Advantages of buying a good domain

1. Builds trust fast for new customers and in the long run.

2. Good for SEOs, can help you rank in the search results naturally.

3. Better for marketing, makes it easier to promote.

4. Can go up in value for reselling.

5. Protects your brand, keeps others from using it.

Disadvantages of buying a good domain

1. Becomes very expensive, a lot of companies or startups cannot afford to buy one.

2. No guarantee it makes your business better or successful.

3. Its risk, if your site gets popular your domain could be costly to renew for the future.

4. Some domains are overhyped and might not be worth as much as you want.

When is a good time to buy a good domain

• Established companies: They have money and can look out for the future.

• Competitive sectors like travel, finance, real estate, e-commerce, etc etc etc.

• Global companies: To be a global brand you need a good domain.

• Protecting your brand: Never ever let someone else own your brand or what you want to use to make your website popular and your trust on the web.

Alternatives to Premium Domains

If you want a big domain but can’t get it, try:

1. Creative names: Different words that pop even without key terms.

2. Domain tricks: Using extensions in smart ways (like bit.ly).

3. New top level domains: Tech, store, or ai domains.

4. Talks: Many sellers say yes to small parts of money or lower prices.

Case Study

• Hotels.com: Its big name helped it win the travel game.

• Tesla.com: Elon Musk paid a lot for Tesla.com, making it match the company’s global role.

• Zoom.com: Owning a simple, big domain made Zoom big fast in the pandemic.

Thoughts On Buying

1. Money fit: Make sure it’s not too much for your other needs.

2. Long run: Buy only if it fits your future plans.

3. Market fit: The name should fit who you want to sell to.

4. Legal work: Check trademarks so you don’t get into trouble.